Italy's Brembo lowers 2023 revenue guidance after US auto strikes
Brembo brake disc systems are seen at the showroom in the factory in Curno, Italy June 19, 2017. Picture taken June 19, 2017. REUTERS/Alessandro Garofalo/File Photo Acquire Licensing Rights
Nov 7 (Reuters) - Brakes maker Brembo (BRBI.MI) on Tuesday nudged down its forecast for sales growth this year, citing a "marked" worsening of global political and economic conditions and the effects of recent United Auto Workers (UAW) strikes in the U.S.
The Italian company now expects mid to high single-digit growth in its 2023 full-year revenue, after previously guiding for an increase of around 10%.
Executive Chairman Matteo Tiraboschi said that after a very good business performance in May and June, a more prudent attitude is now necessary, also due to a Chinese market which was struggling a bit more than expected and unfavourable exchange rates.
"Stellantis, GM and Ford are our clients and some of their plants have been stopped for most of October and part of September due to UAW strikes: inevitably this has caused a business slowdown for their suppliers," he told Reuters in an interview.
Shares in the company were down 1.5% by 1610 GMT, underperforming Italy's blue chip index (.FTMIB).
Brembo however confirmed a target for a percentage core profit margin in line with last year.
In the third quarter, the company's revenue fell 1.3% to 969 million euros ($1.03 billion), while earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 11.8% to 156 million euros.
Asked about Brembo's plan to move its registered office to the Netherlands, Tiraboschi said the company is at present sticking to it, but will assess new Italian rules on this matter once approved.
Italy's parliament is discussing new capital market legislation allowing listed groups to issue shares that give key investors up to 10 times voting rights, cementing their grip on companies and matching the advantages on offer from similar structures in the Netherlands.
"For what we know at present, we go on with our plan," he said.
"When it (legislation) is finally approved and all details clear, we'll look at it for sure and make our assessments".
($1 = 0.9368 euros)
Reporting by Romolo Tosiani in Gdansk and Giulio Piovaccari in Milan; editing by Kirsten Donovan and Keith Weir
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